The Benefits of Owning Over Renting

The Millennial generation has been highly scrutinized as a generation of renters. However, as their generation ages, more and more are starting to see the upside of home ownership. Today, I’ll go over some of the benefits owning a home has over renting.

Sure, you may rationalize that renting adds a fair amount of flexibility to your life. Some people have more insecurity when it comes to their career which makes renting seem more feasible. However, in the long run, there are some long-lasting benefits of home owning. These include:

Building Equity

Each payment you make as a home owner builds up your equity by increasing your amount of ownership on your home. If you are going to live in a home for five to seven years, the costs of home ownership are generally offset by the accrued equity and increased housing value. When the home equity builds to a 20 to 80 loan-to-value ratio, you can borrow against the equity in your home. This can be used with caution on major expenses.

Tax Deductible

When you are a home owner, you are able to deduct taxes from your home mortgage and property taxes. You don’t get that when renting. In certain circumstances, if you qualify, the IRS won’t add “capital gains” tax to the profits from the sale of your home. Those working from home can also take deductions from a home office and portions of utilities.

Creative Choice

One of the more aesthetic reasons to own over renting is the creative choices you are able to make in an owned home over a rented home. Often, rentals don’t allow tenants to paint, and they definitely don’t allow you to make any permanent changes. This can make a space feel less like a home and more like a crash pad. When you buy a home it becomes yours. That means you get to design it how you choose. This can give you a deeper sense of attachment because it is your home.


Home buying is a rite of passage and a deeply rewarding experience, if you have the means to do so. If you are looking to build a foundation for your future and plant your roots, home ownership is highly recommended. It is an investment, and housing prices have only increased over the past few years. They will continue to do so in California. If you are looking to buy a home in the greater Encinitas area, give me a call or send me an email. We can discuss the type of home you desire and find a path to obtaining it. I look forward to helping you.

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